Insurance-linked stocks end mixed after initial euphoria

Paring most of their initial gains, stocks of companies with interest in insurance sector today ended mixed in an overall weak stock market amid profit-booking after Parliament approved the Insurance Bill.
After surging 6.71 per cent to Rs 521 in intra-day trade, shares of Max India Ltd surrendered the gains and finally ended
at Rs 468.30, down 4.08 per cent on the BSE.
Reliance Capital shares ended 3.13 per cent lower at Rs 474.60 after earlier rising 5.11 per cent to Rs 515.
However, shares of Aditya Birla Nuvo gained 1.27 per cent to Rs 1,691.60 and Bajaj Finserv settled 0.81 per cent higher at Rs 1,492.15.

These stocks had gained up to 11 per cent yesterday on hopes of the Insurance Bill would be passed in Rajya Sabha.

Parliament last night passed Prime Minister Narendra Modi-led NDA government's first major economic reform measure as the long-pending Insurance Laws (Amendment) Bill, 2015, providing for raising foreign investment cap in the sector to 49 per cent was passed by Rajya Sabha after main opposition party (Congress) and some other parties came on board.
The bill, which was passed by Lok Sabha on March 4, provides for raising the foreign investment cap in insurance sector from 26 per cent to 49 per cent and is expected to bring in funds worth thousands of crores into the sector.

Meanwhile, the stock market witnessed heavy selling, with the BSE benchmark Sensex falling 427.11 points to settle at 28,503.30.